Mahoning officials won't apply to program to help fund Lowe's

The company wants supervisors to file for $1 million from state.

October 29, 2004|By Sarah Fulton Special to The Morning Call - Freelance

Mahoning Township supervisors have rejected an agreement with Lowe's Home Improvement Warehouse that would commit the township to invest $1 million to fund the company's redevelopment of a Wal-Mart site along Route 443.

The company in August asked the township to take part in a Tax Increment Financing program that would give Lowe's $1 million to help it develop at the Wal-Mart site.

But supervisors voted Wednesday not to take part in the program.

Wal-Mart has sold the building to Lowe's and is renting it as it plans to relocate in two years to a Supercenter down the road.

Under the program, operated by the state Department of Community and Economic Development, the township would secure a bond from the state and use the money to help Lowe's with development.

The township would pay off the bond using tax money generated from development of the property.

The program is aimed at developing blighted areas, but the Wal-Mart store has operated successfully for years.

The bond program lets communities borrow up to $5 million from the $100 million budgeted by the state to help redevelop properties in blighted areas.

Lowe's officials requested in an August letter that the township obtain $1 million.

Supervisors said in September the township wouldn't put money into the project.

The tax financing program has been used in several parts of the state, but not in Carbon County. The county would have to apply to the state to establish the program in Mahoning Township.

The new Lowe's store is expected to create about 150 jobs. The company owns more than 1,000 stores in 45 states and employs 160,000 people. It sold $30.8 billion worth of merchandise in fiscal 2003, according to the company Web site.

The North Carolina company bought the Wal-Mart in June for $4 million with plans to raze the discount store and build a home improvement store with 94,000 square feet of retail sales space and a 23,000-square-foot garden center.

The store would represent a $12 million investment in the community, Lowe's officials said.